Kids and the gig economy

[GuinnessMK]

My eldest has just finished school at 16 and started his apprenticeship. He works 4 days a week so has some free time where he could do odd jobs, pick up extra hours etc. He did want to ride for Deliveroo, but you need to be 18, however there are loads of opportunities locally for him / his trade.

As he's not going on to do A Levels, nor Uni at the moment (can always go back as a mature student later), his Mum and I are wondering how best to encourage / support him.

My thoughts were to start a LTD co, with him as a Director and Mum and Dad as investors, shareholders. That way he could just invoice companies for any shifts worked, rather than getting into PAYE complications with several employers. I realise there will be cost setting it up, managing the books / returns and insurance to cover him.

The upside, as I see it, is that he could put legitimate business expenses through the company, and if he decides to set up on his own in the future, he'll have a vehicle with trading history.

Does that sound reasonable? Any advice if you were in his / our position?

[SantaBarbara]

Does he do one day per week in college?

[Simpo Two]

Can you be a company director at 16 (ie not an adult)?

Why a Limited Company? I spent 25 years happily sending out invoices to blue chips as a sole trader.

[Algarve]

GuinnessMK said:

My thoughts were to start a LTD co, with him as a Director and Mum and Dad as investors, shareholders. That way he could just invoice companies for any shifts worked, rather than getting into PAYE complications with several employers.

Its not up to him to just decide he's going to run a ltd company and avoid PAYE... i would imagine most jobs that a 16 year old would be doing would definitely fall under PAYE and he'd be an employee, especially as you're talking about "shifts worked"

[Simpo Two]

Depends what the 'odd jobs' are I suppose.

If it's gardening, Mrs Miggins won't want to be an employer and arrange his PAYE, NI and pension for 2 hours a week gardening.

However if it's shelf-stacking for Tesco I doubt you'll be able to invoice them!

[Hoofy]

Algarve said:

GuinnessMK said:

My thoughts were to start a LTD co, with him as a Director and Mum and Dad as investors, shareholders. That way he could just invoice companies for any shifts worked, rather than getting into PAYE complications with several employers.

Its not up to him to just decide he's going to run a ltd company and avoid PAYE... i would imagine most jobs that a 16 year old would be doing would definitely fall under PAYE and he'd be an employee, especially as you're talking about "shifts worked"

I wondered that. Would most employers prefer to pay him as they pay normal employees?

[Algarve]

Hoofy said:

I wondered that. Would most employers prefer to pay him as they pay normal employees?

They won't have any choice!

He's either an employee or he isn't, neither he or the employer get to decide to pay him as a contractor.

I also can't really see any 16 year old bringing anything to the table that would make the employer want to go outside of the normal setup to get them working there either

Surely he needs to just go get a job in a fast food restaurant or a shop like every other 16 year old looking for a part time job, and let the employer worry about the tax and deductions...

[Hoofy]

Algarve said:

Hoofy said:

I wondered that. Would most employers prefer to pay him as they pay normal employees?

They won't have any choice!

He's either an employee or he isn't, neither he or the employer get to decide to pay him as a contractor.

I also can't really see any 16 year old bringing anything to the table that would make the employer want to go outside of the normal setup to get them working there either

Surely he needs to just go get a job in a fast food restaurant or a shop like every other 16 year old looking for a part time job, and let the employer worry about the tax and deductions...

Yeah, that's what I was hinting at.